KINGWISOFT TECH issued a profit warning, expecting an annual net loss attributable to owners of no more than approximately 210 million yuan
KINGWISOFT TECH expects an annual net loss of no more than approximately 210 million yuan for the year ending March 31, 2025, an increase from approximately 197.4 million yuan for the same period in 2024. The increase in losses is mainly due to the company's proactive expansion of personnel, equipment, and environment in response to the business transformation brought about by new technologies such as artificial intelligence, as well as increased investment in research and development, leading to rising costs and a decline in gross margin
According to the Zhitong Finance APP, KINGWISOFT TECH (08295) announced that the company expects to incur a net loss attributable to owners of the company of no more than approximately RMB 210 million for the year ending March 31, 2025, while the group recorded a net loss attributable to owners of the company of approximately RMB 197.4 million for the year ending March 31, 2024.
The announcement stated that the increase in net loss is mainly due to: (i) the group has been preparing in advance for the expansion of personnel, equipment, and work environment, training personnel in new business skills, and orderly conducting personnel changes and equipment updates to actively respond to the business transformations brought about by new technologies such as artificial intelligence. The transition between old and new businesses has led to increased costs during specific periods of business development, while revenue has not been able to grow in sync, resulting in a decline in gross profit margin. (ii) To address the application and management needs of new business scenarios, the group has increased its research and development investment related to new businesses and adopted more refined project management, leading to an increase in research and development expenses and management expenses
